The Directorate General of GST Intelligence (DGGI) in Visakhapatnam has arrested Mohammad Saheem V, an individual accused of masterminding a massive GST input tax credit fraud involving fake invoices worth Rs 230 crore. The fraudulent activity caused a loss of Rs 35 crore to the government’s revenue.
Saheem, a native of Pernambut in Vellore, Tamil Nadu, is believed to have orchestrated the scheme by creating multiple shell companies using stolen identities of unsuspecting individuals. This complex network of fake companies spanned across Andhra Pradesh, Tamil Nadu, and Karnataka.
According to the DGGI, Saheem’s fraudulent operation involved generating fake invoices for non-existent goods and services, which were then used to claim input tax credits illegally. These fraudulent invoices were passed to other businesses, allowing them to evade tax payments and divert significant sums from the public exchequer. Saheem set up more than 80 shell companies, none of which conducted legitimate business, but were used as vehicles to issue fake invoices and facilitate tax evasion.
Following extensive search operations in the three states, Saheem was arrested under Section 69 of the CGST Act, 2017. He was brought through transit remand and presented before the Special Judge for Economic Offences in Visakhapatnam. The court has remanded him to judicial custody until January 24, and further investigations are underway.
DGGI Additional Director N Mohammed Ali emphasized the importance of tackling such frauds, stating, “This arrest marks a significant step in our ongoing efforts to crack down on tax fraud and protect the integrity of the GST system. Fraudulent activities like this harm government revenue and undermine the trust of honest taxpayers.”